Seems to me I once read of a situation in which a group of individuals in a certain area whose residences were taken by a government body using eminent domain were paid the current fair market value of their properties (assessed as if the eminent domain situation were not present), plus a bonus amount (10% or 15% of the FMV) which was called the "hurt" and intended to compensate for the involuntary nature of the sale.
Would this hurt then be considered a capital gain? Or some other form of income?
[And can anyone point me to any references when extra compensation equivalent to this "hurt" has been paid or discussed in eminent domain cases, or where the term itself is used in this sense? I've been Googling on the term and the concept, and not coming up with much.]